BlackRock Enhanced Equity Dividend Trust (BDJ)
NYSE NYSE Primary 
BDJ CEF: Secure High-Yields Without Chasing Yields
The BlackRock Enhanced Equity Dividend Fund leverages factor investing and options strategies to mitigate price volatility while providing substantial income through dividends and option premiums. BDJ's partial hedging and high-quality stock selection aim to balance capital appreciation with risk management, making it attractive in a low-interest-rate environment. Despite risks like negative skewness and excess kurtosis, BDJ's historical performance and respectable fees support its potential for solid income-based returns.
BDJ And SPE: Double Digit Discounts And Monthly Distributions
Investing in closed-end funds offers opportunities to exploit discounts and premiums, potentially leading to increased upside. BlackRock Enhanced Equity Dividend Fund and Special Opportunities Fund are currently trading at large double-digit discounts, and that can make them compelling investment options. Both funds offer monthly distributions to investors as well, which can make it easier to be patient in holding these funds over the long term.
BDJ: Growing NAV And Trades At Discount But Has A Few Caveats
BlackRock Enhanced Equity Dividend Trust is a closed-end fund that aims to generate cash flows to support current income through dividend-paying stocks and option strategies. BDJ offers a current dividend yield of 8.7% and monthly distributions, making it attractive for investors seeking income in retirement. However, BDJ lacks exposure to the technology sector, which has limited its potential for capital appreciation compared to funds like BlackRock Science and Technology Trust (BST).
